transNational corporations for host countries Flashcards
multiplier effect
(a small input has a much larger output )
increasing positives over time
benefits brought by MNCs
if labour costs are low, then a product can be made cheaper and the price of the product falls
people in america, europe and asia can buy cheaper goods
what is a MMC?
multinational corporation
what is development
.The process of change for the better this can be economic, social or political
what does the term development gap mean
The widening difference of development between rich and poor.
what is the world bank
An international financial institution that provides loans to developing countries for capital programmes.
what is the development continuum
A linear scale from high developed countries to those with a low level of development.
what 4 catergories of wealth does the world bank place countries in
High income countries (HIC’s),
Upper-middle-income countries,
Lower-middle-income countries,
Low income countries (LIC’s)
gross domestic product (GDP) is one way to measure economic development. what is it?
The total value of all goods and services produced within a country in a year (Total value of the economy)
the average wage of a countries population is known as
Gross national income (GNI)
give 2 other ways we can measure economic development
Poverty: The percentage of the population that earn less than $1.90 per day according to the world bank.
Employment structure: The type of work people do (Primary-Like farming, Secondary-Factory work or tertiary -Services)
what is purchasing power parity (PPP)
A way of comparing the average wealth of a country by taking the cost of living in those countries into account it converts the GNI into a figure that describes what that money will buy in local prices.
what are the limitations of using economic measures of development
They measure only wealth and do not include social factors, They do not recognise the inequality within a country, Without PPP it does not consider the cost of living and what people can afford within that country.
what does NIC stand for
Newly industrialised country - India, China, Mexico, Brazil.
malawi is an example of an LIC country which is land locked what does this mean
It has no coastline and therefore has no sea ports
